EXCEL FORCE MSC BERHAD Annual Report 2020

EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2020 98 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CONT’D) 26. PROFIT BEFORE TAX Profit before tax is arrived at after charging/(crediting) amongst other, the following items: Group Company 2020 2019 2020 2019 RM RM RM RM Auditors’ remuneration - statutory audit 57,000 56,000 52,500 51,500 - non-statutory audit 5,000 5,000 5,000 5,000 Amortisation of product development costs 2,523,242 2,453,044 2,103,308 1,876,429 Depreciation of property, plant and equipment 652,101 692,004 643,406 689,042 Depreciation of right-of-use assets 369,400 374,442 369,400 374,442 Goodwill written off 123,505 - - - Impairment losses on trade receivables - 36,923 - 36,923 Loss on disposal of property, plant and equipment 1 664 1 664 Loss on foreign exchange - realised 17,436 15,408 17,436 15,403 - unrealised 7,550 3,749 7,550 3,749 Non-executive Directors’ fee 191,000 142,400 191,000 142,400 Property, plant and equipment written off - 1 - - Interest income from: - deposits with licensed banks (44,614) (82,004) (27,754) (63,342) - short-term funds (1,036,408) (1,391,366) (1,036,408) (1,391,366) - amount due from a subsidiary company - - (49,531) (77,421) Reversal of impairment losses on trade receivables (15,040) (36) (3,567) - 27. TAXATION Group Company 2020 2019 2020 2019 RM RM RM RM Tax expenses recognised in profit or loss Malaysian income tax Current tax provision 3,347,843 1,609,367 3,343,797 1,609,367 Under provision in prior years 61,019 209,293 56,540 209,292 3,408,862 1,818,660 3,400,337 1,818,659 The subsidiary company, Insage (MSC) Sdn. Bhd. (“Insage”) was awarded with the Multimedia Super Corridor (“MSC”) status by the Government of Malaysia. The financial incentive awarded to Insage under the MSC status is “Pioneer Status” under Section 4A of the Promotion of Investment Act 1986. Insage has been granted the Pioneer Status by the Ministry of International Trade and Industry for services under the Promotion Investment Act 1986 in which the statutory income is exempted from tax for a period of 5 years from 23 March 2014 to 22 March 2019.